Self-Directed IRA's FAQ

Q: What is a Self-Directed IRA?

A: A self-directed IRA is governed by the same IRS rules as any other IRA. The only difference is the capacity of the IRA custodian or facilitator to allow additional alternative investments such as trust deeds or limited liability companies.

Q: What can you invest in with a Self-Directed IRA?

A: You can invest in almost anything. It would be easier to explain what you can not invest in. The two things you can not invest in using your IRA are life insurance and collectables. It is always a good idea to check with your IRA custodian or facilitator before a purchase.

Vanguard Funding Corp. offers the following investments using your IRA:

• Whole first trust deeds backed by California real estate
  
• Fractionalized first trust deeds backed by California real estate
  
• Vanguard Mortgage Investment, LLC a California Mortgage Pool

Q: Can you name a few companies that offer a self-directed IRA for Trust Deed and Mortgage Pool investments?

IRA Services (Custodian)
PENSCO (Custodian)
Charles Schwab (Custodian)
TD Ameritrade
Polycomp (Custodian)
Entrust Group (Custodian)
Guidant Financial (Facilitator)

Q: Who can invest in Vanguard Funding Corp. investment using their IRA?

A: Investors with a self-directed IRA who are California residents and who meet certain minimum standards of income and/or net worth:

A: Only residents of California
B: Those who have a net worth of at least $250,000 [excluding home, furnishings and automobiles].
C: Those who have a net worth of at least $65,000 [excluding home, furnishings and automobiles] and an annual gross income of at least $65,000.

Q: How do I begin investing with Vanguard Funding Corp. using my Self-Directed IRA?

A: To begin investing with Vanguard Funding Corp. using your IRA:

1) Verify that your custodian or facilitator will allow trust deed and Limited Liability Company (LLC) investments.

2) IRA owners must show proof of California residency and meet one of the two following suitability requirements:

a) Have a net worth of at least $250,000 [excluding home, furnishings and automobiles].

b) Have a net worth of at least $65,000 [excluding home, furnishings and automobiles] and an annual gross income of at least $65,000.

3) Fill out the appropriate approved investment or authorization to invest form from your custodian or facilitator

4) Contact a Vanguard Funding Corp. investment representative to help answer any questions you may have.

You can also make an appointment and stop by our office to complete the process.